Form 4: Ramaco Resources CFO Sussman Reports Stock Transactions Following PSU Vesting

Chief Financial Officer Jeremy R. Sussman reports transactions involving Ramaco Resources Class A and Class B common stock following the vesting of performance stock units (PSUs).

Summary

• On January 23, 2025, Jeremy R. Sussman, CFO of Ramaco Resources, reported transactions related to the vesting of performance stock units (PSUs) under the company's Long Term Incentive Plan.
• The PSUs vested based on the achievement of pre-established performance targets at 93.3% for the period from January 1, 2022, to December 31, 2024.
• Sussman acquired 40,431 shares of Class A common stock and 8,086 shares of Class B common stock upon vesting of the PSUs.
• He also received 750 dividend equivalent units of Class B common stock related to stock dividends declared in November 2024.
• A portion of the shares were surrendered to satisfy tax obligations: 12,131 Class A shares at $9.71 and 2,426 Class B shares at $9.15.
• Additionally, 212 Class B shares were withheld to cover tax obligations related to the December Dividend.
• 2,903 Class A PSUs and 581 Class B PSUs did not vest and were cancelled due to not meeting 100% of the performance targets.
• Following these transactions, Sussman directly owns 333,184 shares of Class A common stock and 73,412 shares of Class B common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The vesting of PSUs suggests the company met a significant portion of its performance goals, but the failure to achieve 100% of the targets and the subsequent share surrender for tax obligations temper the overall sentiment.

Positives

• The vesting of performance stock units indicates that the company achieved a significant portion (93.3%) of its pre-established performance targets.

Negatives

• A portion of the performance stock units (2,903 Class A and 581 Class B) did not vest, suggesting that the company did not fully achieve all of its performance goals.
• Shares were surrendered to cover tax obligations, reducing the net increase in the reporting person's holdings.

Risks

• Failure to consistently meet performance targets could impact future vesting of performance-based compensation.
• Tax obligations arising from vesting events can lead to dilution of holdings if shares are surrendered to cover these obligations.

Industry Context

Form 4 filings are standard practice for reporting insider transactions and are closely monitored by investors for insights into management's perspective on the company's stock.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies to align management's interests with those of shareholders.
• The vesting of PSUs based on pre-established performance targets is a standard approach to incentivize and reward executives for achieving specific goals.
• Companies like Peabody Energy (BTU) and Arch Resources (ARCH) also utilize performance-based equity compensation as part of their executive compensation packages.

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign, indicating that management is incentivized to achieve performance goals.
• Employees may be motivated by the potential for future PSU vesting based on company performance.

Key Dates